weiwentg (97.90)

If Intel hits $16, I'm buying

0

I passed up buying Intel during the great crash due to a lack of funds. At one point, you could have got nearly a 4% dividend yield out of the stock. Intel is the behemoth in a pretty cyclical industry. It will be able to hang in where others can't, and demand will most likely go up from here.

Now, Intel has bought McAfee at a significant premium and the stock market is looking a bit shaky. I'm willing to venture that if Intel hits $16, I'm buying. There is a compelling strategic rationale for the McAfee acquisition - security solutions can be integrated right into future chips. AMD and other competitors won't be able to match Intel + McAfee.

Intel's solid competitive advantages mean that the firm will be able to increase its significant dividend. Unlike all other tech firms, Intel is reasonably committed to returning cash to shareholders - committed enough that it's worth buying for the dividend.

McAfee is one of the few companies that have done a very good job at continuing to market new/acquired products and actually integrate them into their central management system (ePolicy Orchestrator). There are (now many) exceptions, but this results in a lower operating cost for clients using their endpoint protection products. Those products that aren't rolled into ePO typically at least integrate with it in some fashion. I consulted for them indirectly for a couple of years but own none of their stock.

Personally, I dislike McAfee immensely. Well at least their anti-virus software sucks, IMO. But it came pre-installed on the Dell netbook that I bought with a 1-yr subscription included so I am putting up with it. Strategically, I agree with Intel's decision but I would have liked it better if they had gone with Symantec. Anyway, I am also a buyer at $16.

as someone who has done numerous cloud computing projects, I am left with the feeling the idea is all BS, just something to tell investors about and a way to take money from the naive. Its all the same technology that we have been using for years just with a new name.